Tesla, co-founded by Elon Musk, has announced that it has bought $1.5 billion worth of bitcoin.
In a filing with the Securities and Exchange Commission, the company said it bought the bitcoin for “more flexibility to further diversify and maximize returns on our cash.”
Additionally, Tesla disclosed that it will start accepting payments in bitcoin in exchange for its products “subject to applicable laws and initially on a limited basis.” The $1.5 billion worth of bitcoin will give Tesla liquidity in the cryptocurrency once it starts accepting it for payments.
The impact of the purchase was immediately felt on Bitcoin price as the crypto surged to at least $44,200.
Tesla shares were up more than 2% Monday morning. In its SEC filing, Tesla warned investors of the volatility of bitcoin’s price.
Tesla’s move into bitcoin represents an investment of a significant percentage of its cash in the investment. The company had more than $19 billion in cash and cash equivalents on hand at the end of 2020, according to its most recent filing.